Nestle to buy 26% stake in Indocon Agro and Allied Activities

The acquisition is subject to the parties fulfilling their respective obligations, Nestle India said in a statement. Photo: Hemant Mishra/Mint

New Delhi: FMCG major Nestle India on Monday said the company has inked a pact to acquire a 26% stake in Indocon Agro and Allied Activities Pvt Ltd.

In a BSE filing, the company said it “has entered into an agreement for acquiring 26% minority stake in Indocon Agro and Allied Activities Pvt Ltd, engaged in milk collection business in western India”.

“This business investment will contribute to creating shared value with farmers engaged in milk,” it added.

The acquisition is subject to the parties fulfilling their respective obligations, the statement said. Apart from milk and yogurt, Nestle sells popular products like Maggi noodles, Nescafe and KitKat chocolates in India. The company has 7,000 employees in India and its products are sold in 40 lakh outlets across the country.

Shares of Nestle India on Monday closed at Rs4,749 on the BSE, up 0.63% from their previous close.